Friday, November 28th-5.6°C
22246
24056

Canadian housing affordability erodes

The Royal Bank says modest increases in home prices and mortgage rates slightly eroded Canadian housing affordability in the second quarter.

The RBC housing trends reports says it was the second straight three-month period in which housing affordability declined in Canada.

The increase in the cost of owning a home as a share of household income followed back-to-back quarterly declines in the latter half of 2011.

Affordability deteriorated in two of three housing categories, detached bungalows and two-storey homes, while condominiums were flat.

Detached bungalows were 0.2 percentage points less affordable, while the measure for two-storey homes worsened by 0.6 percentage points.

The national numbers for bungalows was exaggerated by extremely poor affordability in the Vancouver area, but had little impact on two-storey homes.

The Vancouver-area continued to be, by far, the least affordable in Canada and was very close to the worst on record, said the report released Monday.

The Toronto-area market also deteriorated. While home ownership costs were above the historical average, they were still well below the peaks experienced during the housing bubble in the late 1980s.

Strong activity worsened affordability in Saskatchewan and Manitoba, but were near their historical norms. Atlantic Canada suffered a modest deterioration.

Montreal and Alberta bucked the national trend by showing some improvements in affordability.

RBC says the Canadian housing market showed signs of cooling in the second quarter as home resales fell in May and June but were stable in July. That followed strong activity at the start of the year.

The Canadian Press


Read more Business News

22970


Recent Trending




Today's Market
S&P TSX14744.70-177.74
S&P CDNX741.87-13.53
DJIA17828.240.49
Nasdaq4791.63+4.312
S&P 5002067.56-5.27
CDN Dollar0.8756-0.0004
Gold1175.20-21.40
Oil66.15-7.54
Lumber329.40+1.40
Natural Gas4.295+0.144

 
Okanagan Companies
Pacific Safety0.145-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.27-0.07
Cantex0.04-0.005
Anavex Life Sciences0.1998+0.0288
Metalex Ventures0.06+0.02
Russel Metals29.91-0.79
Copper Mountain Mining1.94-0.18
Colorado Resources0.125-0.005
ReliaBrand Inc0.0134-0.0001
Sunrise Resources Ltd0.05+0.005
Mission Ready Services0.325+0.005

 
24130


24053

FEATURED Property
2126863274 Knightsbridge Way
5 bedrooms 3 baths
$1,049,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Don't stop dreaming!

On Wednesday evening I drove through the Bow Valley in Alberta. It is my old home town... the first place Jackie and I moved to in 1988 when we emigrated. We ended up setting up home there and living...


Second marriage issues

It is not unusual that one or both of the parties planning to marry are approaching marriage for the second time. There are pluses and minuses to this new situation. On the plus side, individuals ente...


The last great Canadian tax shelter

A guide to how flow-through fund limited partnerships can mightily aid your tax planning!The end of the year will raise concerns among many professionals, self-employed persons, business owners and ev...

_



24207

24207


Member of BC Press Council


23646